Kiwi Bolstered By NZ Jobs Data, Pre-FOMC Flows Aid Yen

New Zealand's jobs report for Q3 exceeded expectations, cementing the case for tighter monetary policy. The data reflected an increasingly tight labour market, as the unemployment rate plunged past the level forecast by the RBNZ in their latest MPS and landed close to the all-time low. The unexpected uptick in participation was easily absorbed by a surge in hiring, with employment growth surpassing estimates. NZD crosses trimmed some gains, as some of the post-data hawkish RBNZ repricing got unwound, but remained the best performer in G10 FX space.

• The DXY conceded some ground with today's monetary policy decision from the FOMC looming large. U.S. policymakers are widely expected to start scaling back pandemic-era stimulus.
• The yen gained on defensive flows ahead of the FOMC announcement. Japanese markets were shut in observance of a local public holiday.
• Today's data highlights include U.S. ADP employment change, factory orders & durable goods orders and a suite of Services PMIs from across the globe. Speeches are due from BoE's Bailey, RBA's Debelle & a suite of ECB members.